Legal Question in Bankruptcy in Illinois

We went through a chapter 7 bankruptcy about 2 years ago. Instead of loosing our home, we received a Making Home Affordable modification on our home. We are now having problems meeting this loan obligation. If we decide to discontinue making payments and let the house go through foreclosure, are we still protected under the bankruptcy, since it was initially part of the bankruptcy? In other words, can they come back at a later date and try to get the money out of us?


Asked on 2/19/12, 1:18 pm

1 Answer from Attorneys
Roseanne Lynch Bankruptcy Counselors, Ltd

Basically, you should have been Discharged of the debt since it was incurred prior to the date you filed the Bankruptcy. However, when the loan has been modified there is a possibility that you either signed a reaffirmation agreement or signed something at the time of the modification that would allow the Lender to take a judgment against you even after the Discharge (try to get money out of you). You will have to review the Bankruptcy and the documents you signed for the modification.

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Answered on 2/20/12, 9:09 am


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